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To what percentage is your home mortgaged.


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#16 Mel B

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Posted 16 November 2012 - 01:38 PM

I think our first house was about 80% mortgaged and this one is about 65% based on current market value.

We have experienced a significant drop in our income this year due to global economic issues and it is a huge comfort to know that we could sell this house and walk away with enough to buy in a different (cheaper) suburb. It has really hit home to me how quickly things can change.

So I would want to be extremely confident that I could never be in the position of selling and walking away with nothing, or worse, a debt.
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#17 **** Sarah and Adam ****

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Posted 16 November 2012 - 02:04 PM

I think we are mortgaged at about 90%, we have had to pay insurance on it but we can manage the repayments etc. I definitely consider the serviceability of the mortgage more relevant and additionally a plan/insurance if things go wrong. Id rather be paying my own big mortgage than somebody else's.

#18 Guest_Windsor_Guest

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Posted 16 November 2012 - 02:19 PM

We're in the process of building and are looking at borrowing 70-80% of the finished home value. We've bought the land a while ago and have paid down a lot on that which helps. I'm currently trying to show DH that if we borrow more we'll risk being out of pocket as it won't increase the resale price that much.

#19 la_jeune_mariƩe

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Posted 16 November 2012 - 02:44 PM

QUOTE(Mel B @ Nov 16 2012, 02:38 PM) View Post

I think our first house was about 80% mortgaged and this one is about 65% based on current market value.

We have experienced a significant drop in our income this year due to global economic issues and it is a huge comfort to know that we could sell this house and walk away with enough to buy in a different (cheaper) suburb. It has really hit home to me how quickly things can change.

So I would want to be extremely confident that I could never be in the position of selling and walking away with nothing, or worse, a debt.


Same here. We purchased our first home in Sept 2008 just 2 months prior to the GFC. I was pushing my husband, who at the time was earning 3x his salary in bonus (the days of milk and honey is how we now refer to them laugh.gif ) to buy something bigger but he is conservative by nature and he insisted that his bonus was exactly that, a bonus. We are so lucky I listened as our income halved overnight. It wasn't the worst thing that could happen to us by a long shot and we meandered quite unscathed through it. It didn't damage our marriage or our self confidence as it did to many people. That's how I now approach all my financial dealings and I no longer even dream of taking on more risk than I could emotionally handle if things did go wrong.

That would essentially be my advice Chelley. Ask yourself "if this all went to crap, what is the worst that could happen?".
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#20 Jane Doe

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Posted 16 November 2012 - 03:05 PM

We're currently at about 70%, but we borrowed 100% 5 years ago. We had maybe $2000ish in savings when we impulse bought this house laugh.gif Thankfully we've been able to pay the loan down and values have gone up.

We are looking to upgrade and will go to about 85% at most, even though there will be some mortgage insurance, which is a bummer.
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#21 beachgurl

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Posted 16 November 2012 - 09:08 PM

Regardless of the LVR, if you walk away from it, will you regret it?

I think it's more about whether you are comfortable with the mortgage repayments rather than worrying about the LVR. To me, LMI is just the cost of borrowing. If the average person waited until they had 20% deposit they may miss out on their 'perfect' property and prices are likely to have risen in that time, potentially to a point higher than the deposit saved.

I've bought a few places at 95% and I just have to ignore the LMI figure when I sign the papers. It's a bit of a lull time in the Sydney market in most areas so your equity should build fairly quickly anyway.

#22 Jo P

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Posted 16 November 2012 - 10:58 PM

We borrowed 83% and we are currently sitting at 80%. We have topped up our loan once, to upgrade my car and finish landscaping. We have nil issue servicing our mortgage and put extra into it every week. We have locked our interest rate for 3 years, fingers crossed interest rates aren't sky high then otherwise we may need to sell.
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#23 ~Bella~

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Posted 04 December 2012 - 05:22 PM

We borrowed just over 50% of our loan with my parents chipping in with the rest, which we will be taking out the rest of the money to pay back next year. Our mortgage is considerably low compared to most people because of our suburb, parents help and the upgrades we've put into it..... I hate paying a mortgage but i'd rather it in my pocket or to my bank than paying for someone else's, so that makes the weeks where we've lived wk to wk worth it...
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